Important Points:

BTC broke a major bullish trend line with support at $3,840 on the 2-hours chart.

The price is under pressure and it may soon break the $3,535 support to test $3,200.

Bitcoin Price Analysis

There was a solid rejection noted near the $4,075 level in bitcoin price against the US Dollar. The BTC/USD pair started a significant decline and broke the $3,880 and $3,680 support levels to move into a bearish zone.

The 2-hour chart indicates that the price topped at $4,073, consolidated for a few hours above the $3,920 level and later broke the $3,880 support plus the 100 simple moving average (2-hours) to start a significant downward move.

Chart source by TradingView, Binance

During the decline, the price broke a major bullish trend line with support at $3,840 on the same chart. As a result, sellers took control and pushed the price below the $3,680 and $3,600 support levels.

The price tested the previous swing low and support at near $3,535 and later started consolidating losses. Initial resistance is near the 23.6% Fib retracement level of the recent decline from the $4,073 high to $3,537 low.

A break above the $3,650 and $3,665 resistance levels won’t be easy. However, if buyers succeed in pushing the price above the $3,665 resistance, there could be an extended recovery towards the $3,800 level.

The main resistance is at $3,805 and the 50% Fib retracement level of the recent decline from the $4,073 high to $3,537 low. On the other hand, once the current correction is complete, the price may attempt to surpass the $3,535 support area.

Overall, bitcoin is clearly bleeding below $3,665 and $3,805 and if it breaks the $3,535 support, the next stop could be $3,200. On the upside, the main hurdles for BTC are at $3,665 and $3,805 in the near term.